ORDER OF THE GOVERNMENT OF THE KYRGYZ REPUBLIC

of June 1, 2017 No. 323

About approval of the Regulations on issue, the address and repayment of the Islamic securities issued by the Islamic principles of financing

For the purpose of regulation of questions of release, the address and repayment of Islamic securities in the Kyrgyz Republic, according to articles 10 and 17 of the constitutional Law of the Kyrgyz Republic "About the Government of the Kyrgyz Republic" the Government of the Kyrgyz Republic decides:

1. Approve Regulations on issue, the address and repayment of the Islamic securities issued by the Islamic principles of financing according to appendix.

2. Bring in the order of the Government of the Kyrgyz Republic "About approval of the Regulations on the Unified state register of securities in the Kyrgyz Republic and procedure for assignment of the state registration number to issue of securities" of July 26, 2011 No. 410 the following change:

in Regulations on the Unified state register of securities in the Kyrgyz Republic and the procedure for assignment of the state registration number to issue of securities approved by the above-named resolution:

- the eleventh the subitem "b" of Item 26 to state the paragraph in the following edition:

"10 - Islamic rent certificates - (Sukuk al Idzhara);

11 - Islamic certificates of project financing - (Sukuk al Istisna);

12 - Islamic certificates of partnership - (Sukuk al Musharaka);

13 - Islamic certificates of equity - (Sukuk al Mudaraba);

14 - Islamic certificates of investment agency - (Sukuk al Uakala of Bee al Istitmar);

15 and further from A to Z - are reserved for other types of securities;".

3. Bring in the order of the Government of the Kyrgyz Republic "About approval of regulations on the organization of insurance by the Islamic principles (takaful) and about the securities issued by the Islamic principles of financing (sukuk)" of September 12, 2009 No. 578 the following changes:

- to state the name of the resolution in the following edition:

"About approval of the Regulations on the organization of insurance by the Islamic principles (takaful)";

- third Item 1 to declare the paragraph invalid.

4. This resolution becomes effective after fifteen days from the date of official publication.

Appendix 1

Regulations on issue, the address and repayment of the Islamic securities issued by the Islamic principles of financing

1. General provisions

1. This Provision establishes procedure for issue, the address and repayment of the Islamic securities issued by the Islamic principles of financing in the Kyrgyz Republic (further - Islamic securities), and also determines requirements to Sharia council.

2. The Islamic special finance company is created in form of business of joint-stock company or limited liability company.

3. State registration of release of the Islamic securities issued by the Islamic principles of financing in the Kyrgyz Republic, conditions of public offer of Islamic securities and the prospectus of the issue is performed by authorized state body on regulation of the security market (further - authorized body).

4. Transactions with the Islamic securities which did not undergo state registration in authorized body are forbidden.

Advertizing of release of Islamic securities, before state registration of conditions of public offer and the prospectus, and also disclosure of information, according to requirements of the legislation of the Kyrgyz Republic is forbidden.

5. Issue of Islamic securities, can be the public, followed by public offer Islamic securities, or private (the closed placement) during which the issuer places the Islamic securities by the personal offer.

Islamic securities can be offered publicly only after registration of conditions of public offer and the prospectus of the issue by this type of securities.

6. In case of state registration of Islamic securities the state registration number is assigned to release.

The procedure for assignment of the state registration number is established by the order of the Government of the Kyrgyz Republic "About approval of the Regulations on the Unified state register of securities in the Kyrgyz Republic and procedure for assignment of the state registration number to issue of securities" of July 26, 2011 No. 410.

2. Procedure for issue of Islamic securities

7. The procedure for public issue of Islamic securities is established by the Law of the Kyrgyz Republic "About the security market".

§1. State registration of Islamic securities in case of private issue (the closed placement)

8. For state registration of release of Islamic securities in case of private issue (the closed placement) the issuer submits the following documents to registering body:

1) the statement on state registration according to appendix 1 to this Provision;

2) the copy of the document confirming registration of the issuer as the legal entity;

3) copies of constituent documents of the issuer;

4) the copy of the document confirming the decision making by authorized body about release and the closed placement of Islamic securities containing in addition following data:

- about procedure for determination of the size of the income on Islamic securities, about terms and conditions of payment to holders of Islamic securities of the income on Islamic securities;

- about procedure for forming of reserve fund, including about percent of the gained income directed to creation and further forming of this fund as a part of the allocated issuer's assets, and also data on use of means of reserve fund;

- about procedure for distribution and percentage ratio of the income according to the investment project (in case of release of Islamic participation certificates) between the issuer and originator;

5) the copy of the signed contract between the representative of holders of Islamic securities and the issuer;

6) the copy of the property trust management agreement, constituting the allocated assets (in case of cession of property in trust management);

7) the copy of the business plan of the investment project, including the detailed description of the project, the planned financial flows, potential risks and repayment periods;

8) the conclusion of Sharia council about compliance of the business plan, issued Islamic securities to the Islamic principles of financing;

9) the document confirming payment of the registration fee.

9. The authorized body shall register Islamic securities or make the motivated decision on refusal in state registration not later than in 5 working days from the date of receipt of documents.

10. In case of decision making about state registration of Islamic securities, the decision of authorized body on state registration of release of Islamic securities is issued to the issuer.

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